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Why retiring abroad is the new financial strategy for Boomers
Say goodbye to high costs in the US: Why retiring abroad is the new financial strategy for boomers
From 2019 to 2022, the number of Americans receiving Social Security benefits abroad increased from 413,000 to 760,000. With more countries opening retirement visas, the idea of retire abroad continues to grow in popularity.
Why are so many people attracted to living in another country?
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In addition to the novelty of traveling and experiencing a new culture, two things stand out when we talk to foreign retirees: cost of living and quality of life.
Laura and Chris Barnett, a couple from Fayetteville, North Carolina, told CNN about their plan to move to Portugal, and cost was a major factor.
“[The U.S.] created a system where, even if we have money to cover our day-to-day expenses – rent, food, travel – suddenly another item called health care appears. That’s about $1,500 a month, more than our house payment,” Laura said.
She went on to say that they believe they will be able to live on less than $3,500 a month in Portugal and still be able to travel throughout Europe.
The Wall Street Journal covered the story of six people who retired abroad with savings ranging from $70,000 to $1.8 million. You don’t have to be a millionaire to retire abroad.
One of the couples WSJ spoke to was Halisi Vinson, 58, and Ricard Crawley, 67, who have retired to Lisbon, Portugal. They saved $300,000 for their renovation and, after talking to other people who had moved and visited Portugal for a month, they moved from Denver to Lisbon. Her monthly expenses, which include rent and dining out, are about $2,600 per month. This is half of what they would expect in the US
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Portugal is not the only place where retirees migrate. Susan Wojcik, 62, retired to Samara, Costa Rica, and can cover her expenses with her $1,421 Social Security check.
A retiree living in Spain told the WSJ, “My stress level in Spain is much lower as a result of the lower cost of living and overall higher quality of life.”
It’s not just healthcare, food and rent that cost less when living abroad. Many places, especially in Europe and Asia, have good enough public transport that you don’t need a car. Some countries focus less on consumerism, so there isn’t as much pressure to buy things when they go out.
The story continues
More and more people are increasingly concerned about the possibility of not being able to afford basic expenses on their retirement, and many must continue to work until age 60 to be able to afford health care. If retiring abroad and traveling the world at a lower cost of living is your dream, go for it.
Moving abroad permanently definitely has drawbacks and bureaucracy to worry about – leaving family in the US, taxes, visa application and renewal processes, and other red tape – but it is doable.
If you want to retire abroad or just plan a comfortable retirement in the United States, a good financial advisor can help you achieve financial stability. Consider equipping your financial toolkit with an advisor who can guide you through your unique retirement goals.
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This article Say goodbye to high costs in the US: Why retiring abroad is the new financial strategy for boomers originally appeared in Benzinga. with
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